EU Clears Romanian State Guarantee To Ford Loan

The European Commission on Friday approved Romania's plan to guarantee 80% of a loan taken by US carmaker Ford from the European Investment Bank for investments in its plant in Craiova, southern Romania.

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Ford Romania plans to invest more than EUR1 billion in the Craiova plant, part of a joint European venture to develop engines and cars with lower carbon dioxide emissions.

The EIB lends a total of EUR600 million to Ford Europe for the development project, out of which EUR200 million goes to Ford Werke GmbH in Germany and EUR400 million to Ford Romania.

"The Commission can authorise this state guarantee, which should contribute to Ford's trans-European investment project for environmentally-friendly cars without giving rise to undue distortions of competition", said Competition Commissioner Neelie Kroes.

The loans and the corresponding guarantees will be provided for five years, for the period 2009-2014 with a maturity of seven years.

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